Every week at All Saints Church we put our faith into action. This week we are writing our members of the United States Congress urging them to support the Veterans and Consumers Fair Credit Act to protect consumers from predatory lenders.

Scripture condemns usury and teaches us to respect the God-given dignity of each person and to love our neighbors rather than exploiting their financial vulnerability. Just lending is a matter of Biblical morality and religious concern. In 2012, General Convention affirmed its commitment to the reform of interest rates and usury laws to prohibit abusive and predatory lending practices.

Payday loans are high-cost, small-dollar loans, some of which have annual percentage rates of 300% or greater. Taking out these loans often results in a long-term cycle of debt. When borrowers renew these loans over and over again, as they often do, they end up accruing and paying substantially more in fees than the amount they originally borrowed.

Predatory lending takes advantage of individuals and families who often need loans to pay the bills, keep food on the table, save for the next emergency, or provide for their children. Additionally, payday lenders have targeted borrowers of color by concentrating their locations in communities of color, further exacerbating existing disparities.

After a Department of Defense report showed the devastation caused by payday loans in the military, Congress passed a bill to set a 36% interest rate to protect active-duty military and their families, which has been very successful. Once a person leaves the military, however, these protections disappear, leaving veterans – who take out payday loans at high rates – even more vulnerable (See Texas and Nevada).

Members of Congress have introduced a bill, the Veterans and Consumers Fair Credit Act, that would apply the 36% interest rate cap afforded to the military to all consumers, including veterans, to mitigate and prevent the harm caused by predatory lending practices. 20 states and the District of Columbia have successfully capped their rates at 36% or below to protect individuals and families.

However, there needs to be consumer protection from predatory lending nationwide. The Veterans and Consumers Fair Credit Act (S.2508/H.R.5974), would apply the 36% interest rate cap afforded to the military to all consumers, including veterans, to mitigate and prevent the harm caused by predatory lending practices.

Options to Take Action:

1. Sign an Action Letter at the Action Table outside the church on Sunday morning.
2. Download a pdf copy of the Action Letter, sign and mail it to your members of Congress.
   Here is a pdf copy of the Action Letter for those living outside California.
   
3. Click on this link to take action at the Episcopal Public Policy Network (EPPN) website.

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If you ever need to look up your member of the U.S. House of Representatives or your U.S. Senators check here: www.house.gov and www.senate.gov.

To find contact information for your California State Senator or California State Assemblyperson check here: www.senate.ca.gov and www.assembly.ca.gov.